What was the interest rate for the Term C Loan for Dollar Rent A Car as of June 2028?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
| Facility | Weighted Average Interest Rate as of December 31, 2024 | Fixed or Floating Interest Rate | Maturity | December 31, 2024 |
|---|---|---|---|---|
| Term C Loan | 8.18% | Floating | 6/2028 | 245 |
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, the weighted average interest rate for the Term C Loan as of December 31, 2024, was 8.18%. This loan has a floating interest rate and a maturity date of June 2028. As of December 31, 2024, $245 million was issued under the Term C Loan.
For a prospective Dollar Rent A Car franchisee, understanding the interest rates and terms of the company's debt can provide insight into its financial health and stability. The Term C Loan, with its floating interest rate, means that the actual interest paid by Dollar Rent A Car can fluctuate over time, impacting their profitability. The maturity date of June 2028 indicates when the principal amount of the loan is due to be repaid, which could influence the company's future financial strategies.
It is important to note that the interest rate provided is as of December 31, 2024. Since the Term C Loan has a floating interest rate, the actual rate in June 2028 could be different depending on market conditions. Additionally, the FDD states that as of December 31, 2024, no capacity remained to issue additional letters of credit under the Term C Loan. This could limit Dollar Rent A Car's financial flexibility.
Franchisees should consider these factors when evaluating the financial stability of Dollar Rent A Car and how it might impact their franchise operations. It would be prudent to inquire with Dollar Rent A Car about the current interest rate on the Term C Loan and any potential changes to their debt structure.